EHS (Environmental, Health and Safety) audits have long been a cornerstone of organizations’ EHS management programs. But in today’s complex and fast-evolving business environment, organizations should be using audits to do more than simply confirm compliance. Why? Because the stakes and potential gains are higher.

In recent years, the business environment has undergone significant transformation. Organizations are facing heightened regulatory scrutiny and increasing expectations from investors, employees, and the public around transparency, ethical practices, and sustainability performance. At the same time, global supply chains are becoming more complex, and companies are under pressure to navigate new sustainability disclosure requirements and provide assurance that operational risks (including contractor management) are managed effectively. These requirements must be balanced with the potential perceived ‘downsides’ of audits: business disruption, audit fatigue, and a plethora of actions that don’t drive change but place additional strain on limited resources. These shifts have created the potential to move audits from a compliance exercise to a risk-based strategic tool for driving performance, managing risk and supporting long-term value creation.

Our recent study revealed that 78% of participants aim to integrate audit insights into broader business decision-making, and 65% are actively exploring digital tools to enhance audit efficiency and improve data visibility.

ERM conducted a six-month benchmarking study involving more than 30 multinational companies across six major sectors: oil & gas, chemicals/pharmaceuticals, manufacturing, consumer goods, transport, and aerospace. The study included structured interviews, survey responses, and analysis of audit program documentation to better understand how organizations are adapting.

The benchmarking also highlighted that we all face common challenges, including audit fatigue, inconsistent root cause analysis, and limited cross-functional engagement. Many organizations are also beginning to align audit outputs with recognized sustainability reporting initiatives, using audit data to inform disclosures and performance tracking.

Based on these insights, we’ve identified four key ways audit programs are evolving—and how your own programme must evolve to deliver greater impact.

1. From gaps to gains: Audits as performance drivers

Traditionally, audits have focused on identifying compliance gaps—non-conformities, missed requirements, or procedural lapses. However, more organizations are now using audits that go beyond compliance findings to drive performance gains: actively supporting risk reduction, improving efficiency, including cost savings, and promoting continuous performance improvement.

This shift is driven by a growing recognition that audits can provide valuable insights into systemic issues and operational trends. In some cases, audits are being incorporated into broader Integrated Risk Management (IRM) frameworks, enabling a more holistic view of risk across compliance, operations, sustainability, and cybersecurity. This allows audit teams to align findings with enterprise strategy and deliver insights that support proactive risk mitigation. The benefits? Audits become a driver for performance, not just a compliance checkpoint. However, this requires a mindset shift—from reactive to proactive—and a willingness to embed audit insights into broader business processes.

One global company uses audit findings to inform strategic investment decisions and prioritize environmental upgrades. Several use audit data to benchmark performance across business units, identifying high-performing sites and looking to replicate their practices elsewhere.

Several companies also reported that audits have helped raise awareness and upskill site teams—particularly in less mature locations—leading to improved compliance and operational discipline. This shift can also contribute directly to broader sustainability strategies. For instance, identifying energy inefficiencies or waste management issues during an audit can support carbon reduction targets or circular economy initiatives. Similarly, we have seen organisations uncover systemic issues in contractor management and procurement processes—issues that were brought to light through contractor safety assessments.

Adopting a more integrated audit planning approach, by mapping out audit schedules across departments and identifying shared data needs, can reduce duplication and streamline site engagement. Some organizations are beginning to align EHS audits with internal audit or sustainability assurance cycles, enabling shared use of findings, data on environmental and social performance, and coordinated reporting. Cross-functional collaboration between audit teams—supported by centralized platforms and shared dashboards—can also enhance efficiency and ensure that insights from one domain inform risk management and performance in others. This not only reduces disruption for site teams but also strengthens the strategic value of audits across the business.

2. Building resilience through root cause focus

A key trend emerging from our benchmarking is the move away from quick fixes toward addressing root causes and systemic weaknesses. This is essential for building organizational resilience—ensuring that issues do not just get patched up only to recur down the line – however, many organizations struggle to integrate root cause analysis into business resilience processes.

Our surveys found that while root cause analysis is increasingly recognized as a best practice, its application is inconsistent, in the context of audits, to implement sustainable solutions for the gaps identified and their underlying issues. Some companies lack standardized frameworks or the capability and resources to conduct thorough investigations. Others face pressure to close findings quickly, which can lead to superficial fixes.

The benefits are clear. One manufacturer ties the quality of root cause analysis to internal certification levels, creating a strong incentive for sites to dig deeper. Others are using cross-functional teams (for the audit and/or the root cause analyses) to tackle complex issues collaboratively.

Best practices include developing preventive actions that address underlying issues—not just symptoms—and integrating root cause analysis into corrective action processes with a learning culture. Organizations that do this well report fewer repeat findings and stronger long-term performance.

3. Smarter data management, smarter decisions

Data is at the heart of modern audit programs—but only value adding if it’s managed effectively. Many organizations are overwhelmed by the volume of audit data they collect, struggling to extract meaningful insights or integrate findings with other systems. The real value lies not in collecting data, but in leveraging it to enable faster, more informed decision-making.

According to a benchmarking survey conducted by ERM in 2024, 91% of companies viewed EHS data analytics as critical; however, only 38% had implemented it meaningfully.

Our benchmarking revealed several common challenges: data overload, fragmented platforms, and underutilized analytics. At the same time, digital transformation is gaining momentum, and it’s accelerating rapidly. Organizations are at different stages of the journey, and adoption remains uneven; however, most are experimenting with generative Artificial Intelligence (AI), predictive analytics, and other technologies.

In the context of auditing, companies are adopting cloud-based tools, AI-driven pre-audit analysis, and real-time dashboards to enhance visibility and gather deeper insights for informed decision-making.

Several clients use dashboards to track audit KPIs across business units, enabling mid-year course corrections and board-level reporting. Others are piloting AI tools to identify trends and prioritise high-risk areas.

The challenge? Ensuring that digital tools are well-integrated, user-friendly, and supported by adequate training. Without this, technology can become a burden rather than a benefit.

Integrating audit data with sustainability reporting platforms allows organizations to track progress against environmental and social targets. For instance, audit findings related to energy use or safety incidents can be directly linked to sustainability KPIs, enabling more transparent and data-driven reporting. This synergy not only improves internal decision-making but also strengthens external stakeholder confidence.

4. Coaching, not policing: A culture shift, that puts people first

What is the typical reaction when we are told ‘the auditors are coming next week’? Is it one of fear, distrust, or interest in learning? The most impactful audits are those that foster learning, not fear. This shift is partly related to the approach adopted. But the human element of auditing cannot be overstated: the skills, mindset, and engagement of both auditors and auditees are critical to success.

Our benchmarking found that organizations embracing an open and cooperative audit culture – before, during, and after the audit – report better audit outcomes, reduced resistance, and see greater ownership of corrective actions.

Some companies have taken it a step further—removing audit scoring systems altogether to reduce defensiveness and encourage open dialogue. Others have created searchable good practice libraries from audit findings, enabling cross-site learning and continuous improvement.

Leadership engagement is also critical. The audit should not only involve the EHS Management teams, but also other functions, and Site Management (multi-level auditees, auditing of a particular site or business instead of specific individuals). Organizations that involve senior leaders in pre-audit planning and post-audit reviews report stronger alignment with business goals and greater follow-through on corrective actions. Regular executive engagement helps reinforce the strategic value of audits and fosters a culture of accountability and improvement.

Our research shows that organizations with auditors who are highly skilled & emotionally intelligent, together with engaged site teams, achieve better outcomes. However, many face challenges with auditor capacity, especially as audit scopes expand (e.g., including culture, leadership, and social dimensions).

The most effective auditors blend technical expertise with soft skills—empathy, facilitation, and influence. In low-trust environments, psychological safety is essential. Without it, audits risk gathering surface-level or misleading data.

One company has implemented a rigorous selection process for auditors, ensuring only top-tier professionals lead audits. Another is investing in non-technical skills training as part of their auditor development programme.

Developing a consistent, collaborative framework across diverse sites and cultures can take time and effort. Reframing audits to focus on systemic risks—rather than individual blame—can help build trust and drive meaningful change.

The benefit? Audits that are not only technically sound but also meaningful and motivating for those involved.

Deep dive with us – take part in our EHS audit survey

You have read this far, so you are already thinking about how your audit program stacks up and how your audits should do more than just meet regulatory requirements. They should be a strategic asset—one that helps you navigate complexity, manage risks, and unlock new opportunities for improvement.

We would like to hear more about this! How does your company approach audits? What are the challenges you face? We invite you to take part in our short EHS Audit Survey and we’ll share our insights on how to leverage audits to create more value!

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